$41m reform to replace NSW greyhounds ban

NSW's controversial greyhound racing backflip will cost the state $41 million as the government pumps taxpayers' funds in to reform the industry.

The funding will be used to improve animal welfare standards and create a new integrity commission to oversee the industry.

Animal advocate groups have criticised the Berejiklian government for using taxpayers' money to clean up the sport and it remains unclear how the industry will pay for the reforms once funding runs out.

"This amount of public funds should not be allocated to an industry exposed for mass dog killings, fatal injuries, live baiting and doping with dangerous drugs," Humane Society International Australia said in a statement on Tuesday.

The government says it will adopt all but one of the 122 recommendations of the Greyhound Industry Reform Panel which was set up after then-premier Mike Baird sensationally backed down on his ban on the sport in October.

An independent integrity commission, separate from the sport's commercial operations, will be created and there'll be stricter controls on euthanasia and tougher penalties, including life bans, for live baiting.

Racing Minister Paul Toole says the government will contribute $30 million over five years to implement the reforms with an additional $11 million set aside for the new welfare body.